Recorded RBI impact
Fine: Rs 1.00 L
Monetary penalty · Fresh imposition
Published by RBI
19 Dec 2022
Case Brief
RBI, by order dated December 12, 2022, imposed a monetary penalty of ₹1.00 lakh on The Harij Nagrik Sahakari Bank Ltd., Harij, district Patan (Gujarat). The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, because the bank failed to maintain the minimum Cash Reserve Ratio (CRR), thereby contravening RBI directions on Maintenance of Statutory Reserves – CRR and SLR by Primary (Urban) Co-operative Banks. The RBI noted that the issue came to light in a statutory inspection and, after a show-cause notice, reply, and oral submissions, concluded the contravention was substantiated.
Why RBI Acted
RBI imposed a monetary penalty under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, after a statutory inspection (with reference to the bank’s financial position as on March 31, 2018) and review of related correspondence found that the bank had not maintained the minimum Cash Reserve Ratio (CRR), in contravention of RBI directions on Maintenance of Statutory Reserves – CRR and SLR by Primary (Urban) Co-operative Banks. The bank was issued a show-cause notice, and after considering its reply and oral submissions, RBI concluded the charge was substantiated and warranted penalty.
Operating Impact
The bank must absorb the ₹1 lakh penalty; the release does not announce any further operational restriction or licence action. The finding is a compliance censure that may affect supervisory scrutiny, but it does not by itself restrict customer transactions or operations.
Regulatory Basis
- Section 47 A (1) (c) read with Sections 46 (4) (i) and 56 of the Banking Regulation Act, 1949
Action Facts
- Primary Impact
- Fine: Rs 1.00 L
- Order Date
- 12 Dec 2022
- Effective From
- 12 Dec 2022
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- Co-operative bank